Car manufacturing shows upbeat signs

The under-siege manufacturing sector has been lifted by a 13.5% jump in car manufacturing which led to an overall rise in manufacturing output of 0.4% - the biggest increase since January 2008.

The Office of National Statistics, who released the figures, said the leap in car manufacturing - the sector's best performance since January 2007 - was a major factor in the boost.

A struggle for consumer finance for loans and a reduction in demand led the government to fund aid for the industry, including car scrappage incentives. The moves saw car manufacturing output rise 10.1% in the three months before June, a rise still 43% worse than the same period in 2008.

Electrical and optical product makers also saw a rise, with a 2.%5 increase combining with a 4.1% lift in transport equipment industries which offset a 3.6% decline in chemicals manufacture.

Economists suggested the figures may show that manufacturing has recovered from the worst part of its year of contraction.